In connection with UAL
 Corporation’s and United Air Lines, Inc.’s fresh-start
 reporting requirements upon their exit from Chapter 11 bankruptcy
 protection in 2006 and the Company’s acquisition accounting
 adjustments related to the Company’s merger transaction in
 2010, lease valuation adjustments for operating leases were
 initially recorded in the consolidated balance sheet, representing
 the net present value of the differences between contractual lease
 rates and the fair market lease rates for similar leased assets at
 the time. An asset (liability) results when the contractual lease
 rates are more (less) favorable than market lease terms at the
 valuation date. The lease valuation adjustment is amortized on a
 straight-line basis as an increase (decrease) to rent expense over
 the individual applicable remaining lease terms, resulting in
 recognition of rent expense as if United had entered into the
 leases at market rates. The related remaining lease terms,
 primarily related to aircraft which make up the majority of the
 fair value lease adjustment balance, are one to eight years
 for United. The lease valuation adjustments are classified within
 other noncurrent liabilities and the net accretion amounts are
 $82 million, $107 million and $160 million for the
 years ended December 31, 2016, 2015 and 2014,
 respectively.
**Regional
 CPAs**
United has CPAs with
 certain regional carriers. We purchase all of the capacity from the
 flights covered by the CPA at a negotiated price. We pay the
 regional carrier a predetermined rate, subject to annual inflation
 adjustments, primarily for block hours flown (the hours from gate
 departure to gate arrival) and other operating factors and
 reimburse the regional carrier for various pass-through expenses
 related to the flights. Under the CPAs, we are responsible for the
 cost of providing fuel for all flights and for paying aircraft rent